Five hundred demonstrators from the EDL, many of whom had been drinking heavily, marched through Nottingham chanting: "We want our country back."

A large number had their faces covered with hooded tops and shouted insults aimed at Allah. Others waved placards which read: "Protect Women, No to Sharia" and "No Surrender".

Hundreds of officers, some with dogs, were drafted into control the EDL rally and a counter-protest from Unite Against Fascism supporters.

Brief skirmishes between EDL members and a small group of Asian students waving a Pakistani flag were broken up by officers.

Earlier thousands of Christmas shoppers had gathered to watch 500 soldiers from the 2nd Battalion, The Mercian Regiment, march through the city centre. The homecoming parade followed a six-month tour of duty in Afghanistan, where the regiment lost five soldiers and had dozens of its men injured.

An EDL spokesman said that the group had timed its protest to coincide with the parade but a handful of members left a city-centre pub and began abusing the UAF-organised gathering around midday. During the confrontation a group shouted abuse at the Asian students.

A 43-year-old member of the EDL, a serving soldier who did not want to be named, said: "We came here to support our lads and the UAF and other militants have turned up. I think it's disgusting.

"I look at their protest and there's a Pakistani flag flying with a Muslim symbol."

James Newton, from Nottinghamshire Stop The BNP, said: "The reason we're here is because we believe the EDL is clearly a racist organisation. There are people who say we shouldn't turn up, but if we don't it will give the EDL confidence that they can do what they want. Hopefully people who aren't racist will see us here today and think that there are some people who will stand for what they think."

Nottinghamshire police made a number of arrests and closed a major road during the disturbances.

As night fell, hundreds of police officers escorted EDL protesters away from the city's main shopping streets in a security operation that was expected to cost about £1m.

The EDL claims that it is not a racist organisation and is simply opposing the threat of Islamic extremism.